Turner v Green
High Court
Citations: [1895] 2 Ch 205.
Facts
The defendant met with the claimant’s solicitor to arrange the settlement of an action. Beforehand, the claimant’s solicitor received a telegram informing him of the result of proceedings which were favourable to the defendant. However, he chose not to disclose this information until after the parties agreed a settlement.
The claimant sought specific performance of the settlement agreement. In response, the defendant tried to have the settlement overturned on the grounds that a material fact had not been disclosed.
Issue(s)
- Could the defendant rely on the fact that the claimant’s solicitor had not disclosed a material fact to void the settlement?
Decision
The Court held in favour of the claimant. Their solicitor had not been under any obligation to disclose the information. The defendant therefore had no grounds to resist specific performance of the settlement.
This Case is Authority For…
Parties in negotiations for a commercial contract are not normally under any obligation to disclose information to each other. The failure to disclose information without a duty to disclose will not lead to a contract being void for mistake or voidable for misrepresentation. It will also not be grounds fro resisting specific performance.
